The Conventional Mortgage Playbook

“Conforming loan limits — set annually by FHFA — determine whether your loan gets Fannie/Freddie pricing or enters jumbo territory with higher rates and stricter requirements. Knowing where you fall changes everything.”

“Fixed-rate loans buy certainty. ARMs buy a lower initial rate in exchange for future rate risk. The right choice depends on your time horizon, not your risk tolerance.”

“Discount points let you buy a lower rate by paying upfront interest. Each point costs 1% of the loan amount and typically reduces the rate by 0.25%. The math only works if your break-even period is shorter than your stay.”

“Conventional PMI automatically cancels at 78% LTV, but you can request removal at 80%. For many homeowners, appreciation has already pushed them past this threshold — they just haven't asked.”

“Not every refinance is about lowering your rate. Term reduction, cash-out, and PMI elimination are all distinct strategies with different math. The right one depends on your goals, not just today's rates.”